Najarian: Airline Takeover Talk

Airlines have been losing altitude for the past month, dragged down by $90 oil and worries about a slowing US economy. But, some traders are still making bullish bets on the sector. Why?

I’m seeing a massive amount of options trading explains Najarian. “A large number of investors are selling the December 15 calls in Northwest (NWA) and rolling them out to the March 17.5 calls. 90,000 of those have traded on the day. It’s across Delta (DAL) as well.”

Fast Money Final Call

Airlines have been losing altitude for the past month, but some traders are still making bullish bets on the sector. Fast Money's Pete Najarian, of Najarian Capital, shares his insight on the sector.

The options activity suggests to Pete that Northwest and/or Delta could move higher in the next 3 months on a positive catalyst. He speculates that catalyst could be consolidation.

Pete adds the former CEO of Northwest is now the CEO of Delta. There could be some synergies there, he suggests.

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